XRP stocks cannot collide with the public market

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Under the reserve of the rights application, Ripple is challenging Linqto’s bankruptcy attempt to convert 4.7 million shares into a publicly traded fund.

Ripple emphasized that by choice it remains a private company and does not give consent for the stock to be traded publicly.

Linqto has a scheduled court hearing before Judge Alfredo Perez on October 3, 2025.

Ripple has formally submitted its reservation of the right to challenge Linqto’s bankruptcy strategy, which would convert 4.7 million shares into a publicly traded fund. The move will prevent private stocks from entering the open market without Ripple’s approval.

Reserving rights to Ripple Files

With the reservation of the rights application, Ripple emphasized that by choice, it remains a private company and has not given its consent to the shares being made public. The company stressed that allowing such arrangements could distort Ripple’s valuation and cause confusion over ownership.

Ripple also highlighted that this could put existing shareholders at risk by introducing artificial market activities that are not permitted by the company itself.

Ripple’s legal application shows his willingness to work with Linqto, but this cannot come at the expense of the private position chosen by the company. This recent intervention is likely to form Linqto’s bankruptcy proceedings, and will provide clarity to investor protection in the private equity market.

Court hearing in Linqto case

Linqto is hearing the court, scheduled for October 3, 2025, before Judge Alfredo Perez in the Southern District Court of Texas. The trajectory of Linqto’s bankruptcy restructuring, including financial approval and management, and the use of ripple-related sales revenues will be determined.

The court’s decision will shape how assets linked to Ripple stock are managed and how client claims are addressed in the Linqto Chapter 11 process. Ongoing federal investigation into property ownership and distribution, as well as Linqto’s securities practices, will be addressed at hearings to produce the ultimate legal resolution. It could also resolve uncertainties regarding pending funds for investors after bankruptcy.

During previous court hearings in August 2025, the court blocked LinqTO’s attempt to use client-owned Ripple shares as collateral for a $60 million loan thanks to legal intervention by crypto attorney John E. Deaton.